Correlation Between Federated Kaufmann and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Tiaa Cref at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Federated Kaufmann and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Large and Tiaa Cref Large Cap Growth, you can compare the effects of market volatilities on Federated Kaufmann and Tiaa Cref and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Federated Kaufmann with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Tiaa Cref.
Diversification Opportunities for Federated Kaufmann and Tiaa Cref
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Tiaa is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Tiaa Cref Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Large and Federated Kaufmann is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Federated Kaufmann Large are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Large has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Tiaa Cref go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Tiaa Cref
Assuming the 90 days horizon Federated Kaufmann is expected to generate 1.06 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, Federated Kaufmann Large is 1.05 times less risky than Tiaa Cref. It trades about 0.27 of its potential returns per unit of risk. Tiaa Cref Large Cap Growth is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,501 in Tiaa Cref Large Cap Growth on April 15, 2025 and sell it today you would earn a total of 541.00 from holding Tiaa Cref Large Cap Growth or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Tiaa Cref Large Cap Growth
Performance |
| Timeline |
| Federated Kaufmann Large |
| Tiaa Cref Large |
Federated Kaufmann and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Tiaa Cref
The main advantage of trading using opposite Federated Kaufmann and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Tiaa Cref can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Federated Kaufmann vs. Qs Large Cap | Federated Kaufmann vs. Transamerica Large Cap | Federated Kaufmann vs. American Mutual Fund | Federated Kaufmann vs. Fidelity Large Cap |
| Tiaa Cref vs. Tiaa Cref Large Cap Growth | Tiaa Cref vs. Tiaa Cref Small Cap Equity | Tiaa Cref vs. Tiaa Cref Large Cap Value | Tiaa Cref vs. Tiaa Cref Large Cap Growth |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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